Distribution Management System: What is it and Why is it important?

Today, developing markets are large and complex with thousands of distributors, millions of outlets, and billions of potential transactions. Manufacturers have to manage this vast network of big, medium and small distributors while also juggling the conflicting needs of different channel partners. But, the question is how can manufacturers manage all of this with limited data and insight on the market? How can they manage staffing while allocating the right cost at the right place? And, most importantly how can this ask be made more systemised and seamless?

Well, the answer is simple through a Distribution Management System. The movement of goods from supplier or manufacturer to the point of sale is the main essence of distribution management. We can say that Distribution Management is used for the process that involves logistics, warehousing, inventory, packaging, coding, and decoding supply chain.

For a business cycle to run smoothly it’s imperative to have a seamless Distribution management channel in place. The Distribution channels manage and play a vital role in marginalizing profitability. One can see it in this way; when a product-based company knows how to manage the inventory, they can manage the selling point which will have a direct impact on cash flow and entire revenue generation. Also, having a fruitful distribution management system keeps the business competitive and very consumer-centric.

Seamless distribution management is an overarching solution, one in which your entire route from logistics to inventory management, warehousing solution, sales, and purchase orders are looked upon. The distribution management brings together the above-mentioned requirements and ties them with the finance and sales ledger for a better output. To ease your way into it Outreach solutions are there to shed immense light on these issues and help you run your business in a much coherent and uninterrupted manner.

Why does any manufacturing need DMS?

Well, to answer it simply DMS streamlines and smoothens the inventory channel in any manufacture-retailer-consumer channel. But, to get a detailed report on the obstacles and challenges that leads to DMS solution, we need to understand the importance of Distribution Management System and need to examine the critical tasks pertaining to Channel Management System.

  • Majority of distributors are usually small-scale, they are unorganized and have inadequate capital and tech infrastructure, as result they do not think about hiring appropriate Distribution management solution.
  • Multi brand distributors usually hassle with finding the right foot to manage inventory for every brand they handle.
  • Large distributors do not have access to actionable data and information.
  • To make a mark on rural areas, it’s necessary to add multiple distinctive levels in the distribution chain, doing this will add cost and inefficiency.
  • Lack of real-time data on orders, inventory, claims, and returns leading to stock-outs or overstocking.
  • Limited availability of the internet, and substandard logistics infrastructure adds to the entire issue.

These lack of information in management has an effect of delay over your entire sales pipeline.

So, let’s discuss how Distribution Management System provides a 360-degree solution for your business.

  • Improve customer satisfaction and minimize cost – The mantra to efficiently manage the distribution process is DMS. With real-time knowledge on inventory in-stock and in transit, reorder quantities, and inventory costs. Owners can minimize the inventory process and the costs involved; optimize orders, acceptance, entry, and fulfil the processes.
  • Reduce order times – Eradicate delays through the pre-set-programmed sales order processing and shipping orders. Set rules to manage the multiple warehouses, returns, credit limits, and more with just one click.
  • Know Where Your Business Is – Ensure a steady supply of materials by enhancing and systematizing your purchasing processes.
  • Know your true costs involved – Determine real-time profits by the warehouse, product line, location, or business unit involved in the business. Use updated information to control the costs across the entire supply and distribution channel.

The Distribution Management System removes all possible challenges related to inadequate stock movement, procurement scheduling, scheme management, price updates, order management, and stock-out scenarios.

The ongoing product overflow and retail level congestion have made the role of Distribution Management Solution incrementally important. Automation, via a distributor management system (DMS), is important to completely optimize any FMCG distribution. A good Distributor Management System simplifies all distribution workflows and activities to improve supply chain efficiency. With the help of the right software platform that fuels your sales and distribution activities, your business can achieve high performance in even the most fast-paced and unorganized marketplace. And that’s where Outreach Enterprise Suite comes in. Designed for businesses in emerging and developing markets Outreach enterprise modules bring complete transparency to sales, stocks and distribution end-to-end. Flourish with your productivity and sales automation with Outreach DMS, a one-stop destination for all your stock management hassles.